Why 99% Of People Stay Broke in Web3 (And How to Escape)

The question on every beginner’s mind is simple: why do most people stay broke in Web3 despite the hype of overnight crypto millionaires? The truth is that 99% of people stay broke in Web3 because they treat it like a lottery, not a skill. But the good news is, escaping the cycle of losses is not only possible but it’s achievable if you follow a clear system. In this step-by-step guide, we’ll break down why so many fail and how you can position yourself among the 1% who win big in Web3.

Step 1: Understand the Real Nature of Web3

Most people jump into Web3 chasing fast money. They hear stories about someone who bought a meme coin for $100 and turned it into $1 million. What they don’t realize is that Web3 is not just crypto gambling but, it’s a full-blown digital economy.

Web3 is built on blockchain technology, decentralization, smart contracts, NFTs, and DeFi protocols. But here’s the harsh truth: if you don’t understand what you’re investing in, you’ll become liquidity for those who do.

👉 Example: According to Cointelegraph, over 70% of retail traders lose money in crypto because they follow hype instead of strategy.

Escape Strategy:

• Stop chasing random coins.
• Learn the fundamentals of blockchain and Web3 business models.
• Treat Web3 as an economy, not a casino.

Step 2: Stop Falling for Hype and Scams

One of the biggest reasons why 99% of people stay broke in Web3 is falling for scams and hype-driven projects.

Think about it: how many rug pulls, pump-and-dump schemes, or fake NFT launches have drained investors’ wallets? The hype cycle is designed to make insiders rich and outsiders broke.

👉 Example: A report from Chainalysis shows scams stole over $5.9 billion in crypto in 2022 alone.

Escape Strategy:

• Do your own research (DYOR) before investing.
• Avoid anonymous teams with no track record.
• Focus on projects solving real-world problems, not just “pumping.”

👉 READ ALSO: How to Retire at 35: The Millionaire Script Guide

Step 3: Learn Risk Management Like a Pro

Web3 markets are 24/7, volatile, and ruthless. Many newcomers blow up their entire accounts because they don’t manage risk.

The average beginner:

• Puts 100% of capital in one token.
• Buys at the top because of FOMO.
• Refuses to sell because of greed.

This is why most 99% of people stay broke in Web3.

Escape Strategy:

• Never invest more than you can afford to lose.
• Use position sizing (risk max 1-2% of your capital per trade).
• Take profits gradually instead of “waiting for the moon.”

Step 4: Shift From Consumer to Builder Mentality

Here’s the harsh truth: consumers stay broke; builders get rich.

If you’re just buying tokens, you’re consuming Web3. But if you’re:

• Launching a token,
• Building a DApp,
• Running a DAO,
• Offering Web3 services,

you’re playing on the money-making side of the equation.

👉 Example: Vitalik Buterin didn’t get rich from trading Ethereum, he got rich from building Ethereum.

Escape Strategy:

• Learn Web3 coding (Solidity, Rust, smart contracts).
• Build or contribute to decentralized projects.
• Create value, not just consume hype.

👉 READ ALSO: Top 10 Crypto Investment Tips in 2025

Step 5: Develop Long-Term Patience

Another major reason why 99% of people stay broke in Web3 is impatience. Everyone wants overnight wealth. But the Web3 economy is still in its early stages.

👉 In 1999, most internet startups failed. But those who stayed long enough like Amazon, Google, Facebook ~ became trillion-dollar giants. The same pattern is happening in Web3.

Escape Strategy:

• Think in 5–10 year horizons, not 5–10 days.
• Invest in projects with strong fundamentals and real adoption.
• Be consistent in learning, networking, and building.

Step 6: Master the Power of Community

In Web3, your network is your net worth. Many people fail because they’re isolated, learning in silence, and following random X “Twitter” threads.

Successful people:

• Join DAOs.
• Contribute to Discord communities.
• Network with builders and investors.

👉 Example: According to CoinDesk, most successful NFT launches happened because of strong community-driven adoption.

Escape Strategy:

• Get involved in online Web3 communities.
• Share value instead of just asking for alpha.
• Collaborate with builders, not just followers.

Step 7: Build Multiple Income Streams in Web3

If you only rely on trading tokens, you’ll likely stay (That’s why 99% of people stay broke in Web3). The wealthy 1% in Web3 have diverse income streams:

• Trading (short-term opportunities).
• Long-term investing (blue-chip tokens & NFTs).
• Staking & yield farming (passive income).
• Building (products, services, platforms).
• Content creation (education, newsletters, YouTube, blogs).

Escape Strategy:

• Start with at least 2–3 income streams.
• Use trading/investing for growth and staking for stability.
• Don’t rely on a single hype-driven coin.

👉 READ ALSO: 5 Best Side Hustles You Can Start in 2025 (Step-by-Step Guide)

Step 8: Focus on Education, Not Just Money

The difference between the broke 99% and the wealthy 1%?
The 1% invest in education before capital.

That is why 99% of people stay broke in Web3

Web3 moves fast. If you don’t upgrade your knowledge, you’ll get left behind.

Escape Strategy:

• Follow top Web3 educators and developers.
• Take structured courses in crypto, DeFi, and blockchain.
• Keep up with trends in AI + Web3 + Metaverse.

Step 9: Adopt the “Wealth Discipline”

Wealth in Web3 (or anywhere) is built through discipline, not luck.

Most broke people:

• Spend profits immediately.
• Overtrade when emotional.
• Lack a financial system.

The wealthy 1%:

• Reinvest profits.
• Automate savings/staking.
• Keep a long-term vision.

Escape Strategy:

• Create a wealth plan (how much to invest, save, and withdraw).
• Stick to your system no matter the hype.
• Remember: consistency beats hype.

👉 READ ALSO: If I Have to Start With 0 Dollars, This Is Exactly What I Will Do

Conclusion: Escape the 99% Trap

So now you understand why 99% of people stay broke in Web3 (and how to escape).

To recap:

1. Learn the fundamentals.
2. Avoid scams.
3. Master risk management.
4. Shift to builder mentality.
5. Be patient.
6. Build community.
7. Diversify income streams.
8. Prioritize education.
9. Practice wealth discipline.

If you follow these steps, you’ll avoid the traps that keep the majority broke, and put yourself among the 1% of winners in the Web3 revolution.